The World Bank Report No: ISR100 Implementation Status & Results Kazakhstan Public Disclosure Copy Kazakhstan - Tax Administration Reform Project (JERP) (P116696) Operation Name: Kazakhstan - Tax Administration Reform Project (JERP) Project Stage: Implementation Seq.No: 1 Status: ARCHIVED Last Modified Date: 03-Feb-2011 (P116696) Country: Kazakhstan Approval FY: 2010 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Tax Committee Key Dates Board Approval Date 16-Feb-2010 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 29-Jun-2012 Last Archived ISR Date Effectiveness Date Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed project is to reform and strengthen the tax administration in order to improve the level of voluntary compliance, enhance effectiveness to fight tax evasion, increase administrative efficiency, and reduce the potential for corruption. The project would have a positive impact on the business climate by improving client services, strengthening institutional and human capacity in the tax administration, and reducing the burden of taxpayer compliance. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Institutional Development 4.85 Operational Development 14.78 Public Disclosure Copy IT Infrastructure Development 27.60 Project Management 4.20 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Overall Risk Rating Implementation Status Overview Following a request by the Government, the Bank has extended the effectiveness date of the TARP from January 12, 2011, to April 12, 2011 to allow time for tthe ratification of the Page 1 of 7 The World Bank Report No: ISR100 Loan Agreement (LA) by the Parliament (Majlis and Senate) and to receive President's assent, as also to meet the effectiveness conditions. These include: a. Project Implementation Plan (PIP) and Project Operations Manual (POM) have to be submitted for approval to the Bank. Public Disclosure Copy b. Project Steering Committee has to be set up. c. Financial management software has to be of acceptable standard d. PMU has to be established to include an FM and procurement consultant Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Non-oil Tax/GDP ratio increased 16.70 Date Date Date 31-Dec-2008 Type Unit of Measure Comment Comment Comment Custom Indicator Percentage Indicator Baseline Current End Target Indicator Name Value Value Value Nominal increase in average tax revenue collected by each tax official 328.00 Date Date Date 31-Dec-2008 Type Unit of Measure Comment Comment Comment Custom Indicator Number Indicator Baseline Current End Target Indicator Name Value Value Value Increase in percentage of electronic filing 61.20 Public Disclosure Copy Date Date Date 31-Dec-2008 Type Unit of Measure Comment Comment Comment Custom Indicator Percentage Page 2 of 7 The World Bank Report No: ISR100 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Reduction in average time taken by taxpayers to comply with tax 271.00 obligations as evidenced from survey Date Date Date 31-Dec-2008 Type Unit of Measure Comment Comment Comment Custom Indicator Number Indicator Baseline Current End Target Indicator Name Value Value Value Improvement in perception of taxpayers regarding level of professionalism and honesty of tax administration Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Text Indicator Baseline Current End Target Indicator Name Value Value Value Increase in adjustments made as a result of tax audits per auditor 172.00 Date Date Date 31-Dec-2008 Type Unit of Measure Comment Comment Comment Custom Indicator Number Indicator Baseline Current End Target Indicator Name Value Value Value Increase in percentage of field audits selected by automated procedure Public Disclosure Copy Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Percentage Page 3 of 7 The World Bank Report No: ISR100 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Reduction in cumulative stock of arrears as a percentage of total tax 1.70 collected in a year Date Date Date 31-Dec-2008 Type Unit of Measure Comment Comment Comment Custom Indicator Percentage Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Organizational review and design of appropriate organizational Not yet structure at HQ and in the regions Date Date Date 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Indicator Baseline Current End Target Indicator Name Value Value Value Reorganization and consolidation of the TC on functional rationalization Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Text Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Feasibility study for establishing a tax Training Institute Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Text Page 4 of 7 The World Bank Report No: ISR100 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value VAT productivity 0.30 Date Date Date 31-Dec-2008 Type Unit of Measure Comment Comment Comment Custom Indicator Number Indicator Baseline Current End Target Indicator Name Value Value Value Public perception of quality of taxpayer services Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Text Indicator Baseline Current End Target Indicator Name Value Value Value Development of design and systems architecture for the integrated IT system with major functions Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Text Indicator Baseline Current End Target Indicator Name Value Value Value Development of data processing centers Public Disclosure Copy Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Text Page 5 of 7 The World Bank Report No: ISR100 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Development of call centers Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Text Indicator Baseline Current End Target Indicator Name Value Value Value Development of automated risk management and VAT refund system Date Date Date Type Unit of Measure Comment Comment Comment Custom Indicator Text Data on Financial Performance (as of 09-Sep-2010) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P116696 IBRD-78350 Not Effective 16-Feb-2010 12-Jul-2010 31-Dec-2014 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P116696 IBRD-78350 Not Effective USD 17.00 17.00 0.00 0.00 17.00 0.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR100 Public Disclosure Copy Key Decisions Regarding Implementation There has been progress. In early January 2011, the Majlis and the Senate have ratified the LA and the President has given his assent. We are working closely with the Tax Committee and the MOF to ensure that effectiveness conditions are met soon and hope to declare the project effective by February end, and in any case well before the extended date for effectiveness. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7